Bear market for the first time? This is also the first bear market for Bitcoin (BTC) to Michael Saylor, one of the biggest Bitcoin bulls in the world.
Saylor, CEO of one of the world’s largest Bitcoin-friendly companies, spoke briefly with Cointelegraph at the Bitcoin Pacific conference in Los Angeles. Most importantly, Saylor told Cointelegraph that when it comes to Bitcoin, “you have to look at the long term.”
“If you buy [Bitcoin] and your time horizon is less than four years, you’re just guessing. And when you have a period of more than four years, obviously your cost averaging is dollar.
Dollar cost averaging is a way reduce the impact of investment volatility. Saylor continued, “You’re buying an asset that you want to hold for a decade or more, which is a long-term store of value.”
Con 130,000 BTC, MicroStrategy owns 0.62%. the total supply of Bitcoin, as the total amount of Bitcoin that can be mined is limited to 21 million. MicroStrategy’s entry price is roughly $30,639 per BTC, meaning the technology group’s entire investment is essentially underwater if it were to trade for dollars.
But Saylor is baffled by the fact that billions of dollars have been lost on paper, saying, “Don’t get involved and look at the price day by day, week by week.”
A billionaire compares the valuation of Bitcoin to the valuation of a house. He joked that “If you buy a house and then every time you go to a party you get drunk and 11pm. do you come up in the middle of the night and say, “How much would you pay for my house?” I want to sell you my whole house right now. Someone might say, “Well, I’m not in the mood to buy a house. I’ll give you about half of what you paid for it,” and then you go home upset saying, “I lost all my money.”
Avoid that anxiety, he advises, and if you really need the money in the next 12 months, it’s not investable capital; Instead, Saylor explains, “it’s working capital.”
“The logical model is this: if you live in Argentina, you have pesos for a month or two, dollars for a year or two. You’ve had Bitcoin for a decade or two. And when you think about it in those frequencies and time frames, it all starts to make sense.
Finally, as suggested by Saylor and Binance CEO Changpeng Zhao, guard your Bitcoin. Given the collapse of another cryptocurrency exchange that holds customer funds, Bitcoin storage is the only way to guarantee assets that cannot be confiscated.
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